Common use of Collection of Death Proceeds Clause in Contracts

Collection of Death Proceeds. (a) Following the deaths of both Insureds, the Corporation and the Owner promptly shall take all action necessary to obtain the death benefit provided under the Policy. (b) The Corporation shall have the unqualified right to receive a portion of such death benefit equal to its Collateral Interest in the Policy. The balance of the death benefit provided under the Policy, if any, shall be paid directly to the Owner, pursuant to the beneficiary designation for the Policy. In no event shall the amount payable to the Corporation hereunder exceed the Policy proceeds payable at the death of the Insureds. No amount shall be paid from such death benefit by the Owner until the full amount due the Corporation hereunder has been paid. The parties hereto agree that the beneficiary designation provisions of the Policy shall conform to the provisions hereof.